Florida's attorney general has filed lawsuits against Stake and VGW, targeting their sweepstakes casino operations and payment processors, as the state intensifies enforcement against unlicensed online gambling platforms
Florida has escalated its enforcement against unlicensed online gambling by filing lawsuits against Stake and VGW, two major operators of sweepstakes casino platforms. The legal action, announced by Attorney General James Uthmeier, marks a significant move in the state's ongoing efforts to regulate online gaming and protect consumers from what officials describe as illegal gambling operations.
Details of the Lawsuits
The lawsuits, filed in Hillsborough County Circuit Court, target both Stake and VGW for their sweepstakes casino activities, as well as associated payment processors. VGW is known for operating popular brands such as Chumba Casino, LuckyLand, and Global Poker. According to the complaints, these platforms are accused of running illegal online casinos under the guise of sweepstakes or social casinos, allegedly bypassing Florida's licensing, taxation, and consumer protection requirements. The state seeks to bar both companies from operating in Florida, recover winnings from prior operations, and impose civil penalties of up to $15,000 per willful violation of state gambling law.
Financial Stakes and Enforcement Goals
The financial scale of the sweepstakes casino market is substantial. Court filings reveal that VGW alone generated more than $5 billion in revenue in 2025, with $3.7 billion attributed to Chumba Casino. The lawsuits argue that these operations have targeted Floridians, including vulnerable groups such as minors and seniors, through aggressive marketing and 24/7 access. The state’s legal filings emphasize that rebranding as “sweepstakes” does not exempt these platforms from gambling laws if they functionally operate as casinos.
Regulatory Context and National Trends
Sweepstakes and social casino models have grown in popularity across the U.S., especially as traditional online sports betting and iGaming legislation has stalled in several states. However, regulatory scrutiny has increased, with states like California, Connecticut, Louisiana, Montana, New Jersey, New York, Oklahoma, and Tennessee banning sweepstakes casino models in 2025 and 2026. Florida’s lawsuits reflect a broader national trend of states moving to close perceived loopholes in gambling law. For comparison, other legal actions have focused on prediction markets, as seen when Novig challenged state restrictions in a recent multi-state lawsuit, but Florida’s current focus is squarely on sweepstakes casinos.
Florida’s Gambling Landscape
Florida’s gambling market is shaped by a complex legal framework. Most forms of gambling are prohibited, with exceptions for tribal gaming under compacts. The passage of Amendment 3 in 2018 requires voter approval for any expansion of casino gambling, effectively cementing the Seminole Tribe’s exclusive rights. Attempts by commercial operators like DraftKings and FanDuel to challenge this exclusivity have failed to reach the ballot. As a result, Hard Rock Bet remains the only authorized online sports betting operator in the state. In 2023, state regulators also issued cease-and-desist letters to PrizePicks, Underdog, and Betr for their daily fantasy sports operations, signaling a pattern of strict enforcement against unlicensed online gambling products.
Understanding sweepstakes casinos requires recognizing how these platforms use virtual currencies and free-to-play models to mimic real-money gambling while claiming exemption from state gambling laws. Typically, players can purchase virtual coins for entertainment, with the chance to win cash prizes through sweepstakes entries. However, regulators increasingly view these models as functionally equivalent to online casinos when real money is involved, leading to heightened enforcement and legal challenges in multiple states.
